Online music market giants are watching: Kuke Music takes a different path and chooses hard and hard

Foreign music giants are eager to see. Apple Music promoted it in the China student market in the first half of this year, and Spotify has repeatedly announced its entry into the China music market. Local Internet music companies are also taking frequent actions to grab users, traffic, and genuine digital music resources.

past two years, Internet music in China has undergone earth-shaking changes.

For example, last year, QQ Music and Ocean Music, which were once jealous, merged. Gao Xiaosong and Song Ke's status in Ali rose and fell. Taihe Music continued to make various actions, but Netease Cloud Music also performed well.

At the same time, foreign music giants are eager to see. Apple Music promoted it in the China student market in the first half of this year, and Spotify has repeatedly announced its entry into the China music market.

Local Internet music companies are also taking frequent actions to grab users, traffic, and genuine digital music resources.

On the New Third Board, there are also two Internet music companies that are competing for food under the mouths of giants. They are Duomi Shares and Kuke Music, which are known as the number one share of China's music.

Domi has a luxurious lineup and outstanding performance.

The founder of Domi is Feng Yousheng, who founded Yingke. He previously worked for A8 Music Group.

The shareholder lineup is also quite luxurious. Among its shareholders are not only listed companies such as Huayi Brothers, Septwolves, and Enlight Media, but also well-known institutions such as Rock Capital and Boshi Capital. Its largest shareholder and chairman Liu Xiaosong is also Tencent's earliest investor. one.

It is reported that Liu Xiaosong invested in Tencent in 1999, holding up to 20% of the shares. Later, he founded A8 Music Group in 2000, and then A8 Music Group was successfully listed on the Hong Kong Stock Exchange in 2008.

However, the many halos imposed on him did not stop the bleak performance of Domi shares. The annual report shows that Domi's revenue from 2015 to 2016 was 26.0754 million and 23.8025 million respectively, with losses of 7.6674 million and 27.0047 million respectively.

Kuke Music's shareholders do not have such a big background, but their performance is outstanding. Kuke's revenue from 2015 to 2016 was 40.816 million and 76.1787 million respectively, and its net profit was 9.752 million and 21.0639 million.

Only when giants gather together can they stand out with differentiated positioning.

Why is the performance of the two companies so different?

It can be found from the revolving books of the two companies that although they are both music platforms, Duomi shares and Kuke Music have not developed in the same direction.

Aiming at the needs of core users born in the 1980s and 1990s, Domi focuses on pop, R&B, rap and other music genres that are most popular among young people in South Korea, Hong Kong, Taiwan and the mainland.

Currently, the company's operating platforms include the online music platform "Domi Music" and the fan interaction platform "Iupu". The two platforms promote each other. While "Dui Music" provides a large amount of user traffic for "Dui Music","Dui Music" also provides user vertical services for "Dui Music" to increase its user stickiness.

Its main income mainly comes from value-added services such as Changting traffic packages, monthly subscriptions, and membership based on the "Duomi Music" platform, as well as advertising, channels, headset sales, and ticket sales.

However, Domi's competitors are really too strong, including QQ Music, Netease Cloud Music, Shrimp Music, Taihe Music, etc., all piled up in this field to fight and grab traffic, doing the same business. At the same time, Domi also has to worry about genuine digital music resources.

According to Domi's 2016 annual report, the average monthly active users of the "Domi Music" platform was approximately 8.2327 million, a decrease of 35.7% from the same period last year. One of the reasons is that Domi resolutely offline tracks that have not been copyrighted, resulting in the loss of users.

For example, QQ Music, after its merger with Ocean Music, its monthly income exceeded 400 million last year. It can be seen that in the field of pop music, it is difficult to stand out without accurate differentiated positioning.

Kuke Music, on the other hand, focuses on non-pop music, perfectly avoiding the scuffle among the giants.

Kuke focuses on classical music and takes root in copyright operations

. Since its founding, Kuke started to cooperate with foreign classical music copyright parties. Later, it successively obtained exclusive licenses from more than 100 foreign classical music record companies in China, about hundreds of thousands of songs, including classical music from the Middle Ages to the 20th century.

At present, Kuke's digital music library collects 98% of the world's classical music. It also includes local original ethnic music from more than 200 countries and regions around the world, as well as opera, jazz music, film music, New Century music and other music types, totaling about 2 million songs.

Not only has Kuke obtained the copyrights of many non-pop music, Kuke Music has also been deeply involved in the use rights of these copyrights. In addition to downloading and online playback, it also includes cooperation with mobile operators, background music in public places, and rights such as playback and subauthorization.

However, other domestic music services will not cover such a wide range of aspects in the field of classical music, nor will they receive such in-depth authorization.

After having such deep copyright rights, Kuke also began to develop the B-end market.

At present, Kuke has accumulated more than 500 university and public library users in its digital music library operation business, including well-known universities and national libraries such as Peking University, Tsinghua University, and Fudan University. Through continuous in-depth and comprehensive market research, music education products such as "Digital Music Gramophone" and "Kuke Cloud CD" have been successively developed.

In terms of audio and video copyright distribution and retail, Kuke has established a "Kuke Background Music" service platform with its own technical team.

The platform's playlists can cover the needs of shopping malls, supermarkets, hotels, restaurants, cafes, sports venues, teahouses, spas, lounges and other commercial venues, and each commercial venue obtains background music services for Kuke music through payment every year.

At present, background music services in commercial venues cover about 7000 public broadcast points, including Gome Mall National Stores, Joy City, Guiyou Group, Xingguang World, Guomao Mall, Guiyang Xingli Group, Shangjie Shopping Center, Roosevelt Square, etc.

In addition, Kuke also earns copyright licensing income through offline cooperation with companies such as China Mobile Music Base and Bo Guang Tonglian.

In terms of C-side, Kuke has been promoting the personal music payment model since its establishment. Currently, Kuke Music website has accumulated millions of registered users, some of whom have been converted into paying users. It is also promoting individual users through two APP apps,"Kuke Music" and "Cross-eyed Cat".

In the first half of 2016, concert film documentaries were also introduced into China by purchasing movie playback rights, and box office revenue was realized through cooperation with concert halls and public libraries.

Moreover, Cook's Kukey smart piano has also begun to be widely promoted in China. At present, Kukey Smart Piano has won the bid for smart piano music classroom projects in many places in 2016. According to Cook Music's 2016 annual report, Kukey's electric piano revenue in 2016 reached 16.4 million yuan.

Editor: Mary